In an effort to help meet the urgent balance-of-payments needs stemming from the fallout from the novel coronavirus pandemic, the International Monetary Fund (IMF) will be providing The Bahamas with US $250 million under the Rapid Financing Instrument (RFI).

According to the IMF, COVID-19’s impact alongside the widespread destruction caused by Hurricane Dorian in September 2019, which has led to the collapse in tourism has caused a deep recession for the country and the need for large external and fiscal financing.

“The disbursement under the RFI will help boost resources for essential COVID-19-related outlays, strengthen reserves, and catalyse additional support from other international financial institutions, development partners, and the private sector,” stated Tao Zhang, deputy managing director and acting chair.

“Looking beyond the crisis, it would be important for the authorities to resume their ambitious reform agenda, including enhancing public financial management and state of public emergency governance, advancing revenue administration reforms, and continuing to improve the effectiveness of the Anti-Money Laundering/Combating the Financing of Terrorism framework. Strengthening resilience to natural disasters also remains a priority.”

To contain the outbreak and mitigate the impact on the economy, the Government of The Bahamas declared a state of emergency in March, closed air and sea borders, and established an Economic Recovery Committee to guide the country’s COVID-19 response and recovery efforts. The authorities have also introduced targeted fiscal measures to support the health care system, employment, and the most vulnerable segments of the population.

The Bahamas has reported 103 cases of COVID-19, 67 recoveries, and 11 deaths.

— Abbion Robinson